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Here’s how Wall Street is looting public workers’ pension funds

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An excerpt or two from Matt Taibbi’s unsettling report in Rolling Stone on the rape of public pension funds across the country can’t do it justice.

Besides, it’s a long and complicated story.

Read the whole thing HERE (but be warned that some of the language is vulgar).

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2 Comments

  1. Thoughts

    – 14% of Rhode Island’s pension fund going towards hedge funds doesn’t sound so bad. Instead, it sounds like a smart diversified fiscal strategy. What are they supposed to with the money? Put it in savings accounts? Invest in gold? So what kind of return did the tax payers of Rhode Island get from that investment? The author conveniently left that out. I’m guessing it’s a lot better than negative return on investment the incompetent people in Illinois did with the teacher’s union pension funds.

    – I feel no sympathy for workers who “pitch in as little as one and as much as 10 percent of their income every year.” Get back to me when public employees start contributing 20% of their pay towards pensions.

    – I will admit that public pensions should have been covered in the ERISA. And government officials should be prosecuted from borrowing from state pension funds.

    – I also agree that state governments should be forced to finance public pensions at 100% every year. That way the greater public can see how expensive they really are, and how little money is left over for other critical programs like infrastructure spending and support of mental institutions.

  2. TO: Neftali

    Regarding the percentage of pay towards pensions, one must take into consideration that government salaries are below market in most cases. In the case of professionals (IT, lawyers, medical personnel, etc) government wages are very much below market. It’s all a part of the trade-off – – less than market wages vs. defined benefit pension. State workers and teachers have held up their end of the contract. The legislators have acted irresponsibly for decades. The taxpayers have been the beneficiaries of the legislators’ irresponsibility.

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